Council approves hike in utility rates

Published 8:21 am Wednesday, December 17, 2014

The Niles City Council unanimously voted to implement across-the-board increases in utilities prices after just one resident spoke against the move at Monday’s regular meeting — the last of the calendar year.

Effective Jan. 1, customers of the city’s utilities services will see a 6.5-percent increase for electric, a 5-percent increase for water and a 4-percent increase for sewer.

An average residential customer can expect to see their electric bill increase by $6.75 a month, their water bill by $1.28 a month and their sewer bill by $1.02 a month.

Niles resident Tammy Frame was the only member of the public to speak about the proposed rate increases during a public hearing prior to Monday’s council meeting.

She was not in favor of the increases.

“We keep paying and paying. What about people with fixed incomes?” she said.

When the motion came to a vote several minutes later, councilman Dan VandenHeede explained that rate increases would help the city pay for updates to its aging infrastructure, which would likely lead to decreased maintenance/repair costs.

“The utilities, they do need it,” he said. “We are operating on — I wouldn’t say a shoe string — but we certainly have cut a lot from utilities the last few years.”

Utility Financial Solutions performed a study of the city’s utilities divisions earlier this year and recommended the rate hikes.

Utilities Manager Jeff Dunlap said in October that the increase in electric rates is needed mainly because it will cost the city between 9- and 14-percent more to purchase electricity wholesale from AEP in 2015.

The need for an increase in water rates, he said, can be attributed to an aging infrastructure, capital improvement projects and heavy maintenance and repair costs sustained during the difficult 2013/14 winter.

Niles last raised electric rates in September 2011, water rates in October 2013 and wastewater/sewer rates in October 2013.

Also Monday:

• The council approved revisions to the city’s personnel manual allowing for, among other things, the use of electronic cigarettes inside city buildings.

• The council gave the go-ahead for National Standard to demolish unused industrial property known as the “City Complex,” located on the northeast side of the city between Wayne and Howard streets and North 8th and North 11th streets. The city waived a provision in its demolition ordinance allowing National Standard to remove all above-ground structures without removing certain foundations, walls, basements, floors and footings. National Standard has agreed to cap the land and seed it with grass so it can be used as a recreational green space. The city’s attorney advised the council to allow the waiver. VandenHeede was the only council member in opposition, citing concerns for potential environmental hazards that would remain in the soil without the removal of below-ground structures.

• Approved the 11th annual Hunter Ice Festival to be held downtown Jan. 16-18.

• Approved the 6th annual Frigid 5K to be held Jan. 17 on Riverfront Trail.

• A city employee thanked the council for granting employees a bonus personal day on Dec. 26.